Runes protocol sees a significant decline in activity

Since the first week of trading, the activity of the Runes Protocol has decreased significantly. On May 10th in particular, there was a significant decrease in activity compared to previous periods with very few new mints and new wallets connecting to the protocol.

According to a Dune Analytics dashboard compiled by RunesEyes, the protocol's fee revenue is steadily declining. Although Runes still earns hundreds of thousands of dollars every day on the Bitcoin blockchain, total payments have exceeded $1 million on two occasions in the past twelve days, which shows a significant downward trend.

Runes is a new Bitcoin (BTC) token standard that allows users to create runes on the blockchain. They were created by Casey Rodarmor, the creator of Ordinals, which made Bitcoin's invincible tokens possible.

The Runes Protocol It has been running for three weeks since its April 19 launch, which coincided with the recent Bitcoin halving event. The launch of Runes sparked a frenzy among investors, which led to an increase in transaction fees and a record-breaking windfall for Bitcoin miners, with more than $135 million in payouts in the first week alone.

Data from Dune Analytics shows that as of April 24, Runes-related transactions accounted for the majority of transactions on the Bitcoin network. On April 23, Runes had the highest transaction share of 81.3%, pushing Bitcoin (BTC) transaction share to 18.15%, with Ordinals and BRC-20 transactions at 0.1% each.

Until May 2nd, Runes' transactions continued to decline for the next nine days. From May 3, Runes began to recover. On May 4 and 5, Runes regained more than 60% of the market share.

Related: Bitcoin Ordinals, Runes Key To Solving Mining Subsidy Problem: ViaBTC

Following the Bitcoin halving, the mining community welcomed the payment as their income dropped significantly. However, in May, the total earnings of Bitcoin miners dropped below $30 million per day.

Runes, like Ordinal, open up new levels of tokenization on Bitcoin's blockchain, providing a more efficient tokenization solution than BRC20. This led to an increase in trading of memecoin on Bitcoin, which recently completed its one billionth transaction.

While many platforms have had challenges in gaining initial traction, Runes has already achieved tremendous success, with several rune collections boasting market capitalizations in the hundreds of millions of dollars, according to data from Magic Eden.

Additionally, Casey Rodermore recently hinted at an innovative audioactive generative art project at a casual event in Hong Kong, further demonstrating the potential of the platform.

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